Flash Fixed Income: A game-changer for European assets?

The incoming German government’s removal of the country’s infamous “debt brake” is a serious pivot for the typically fiscally conservative country, and one that we think highlights the value on offer in European assets. In our view, the steepening of the Bund curve reflects market expectations of a boost to growth rather than concerns about higher inflation. While rates markets have begun to price in this conclusion, European credit continues to offer an additional premium, set against what is arguably a more stable fundamental backdrop than the US. Read more on the case for European credit....